Humanigen Inc (NASDAQ:HGEN) (FRA:0KB2) announced Tuesday that it has signed a licensing agreement with Telcon RF Pharmaceutical Inc and KPM Tech Co Ltd for the development and commercialization rights to its drug lenzilumab as a coronavirus (COVID-19) treatment in South Korea and the Philippines.
The deal is worth as much as $20 million, including $6 million in an upfront payment when the agreement is executed and $14 million in two payments when certain achievement milestones are met by Humanigen in the US.
Telcon and KPM Tech will be responsible for gaining regulatory approval and subsequent commercialization of lenzilumab in its territories, and Humanigen will earn double-digit royalties following such approval on net sales after commercialization.
READ: Humanigen says MedStar Washington Hospital Center in Washington, DC treats its first COVID-19 patient with lenzilumab
Telcon is an affiliate of KPM Tech, and both companies recently invested in Humanigen as part of the company’s June offering. Telcon produces liquid formulations, tablets, pills, capsules and other pharmaceutical products, as well as communication equipment, the company said.
“We have supported Humanigen through an equity investment and see lenzilumab as an excellent therapeutic solution for the hyper inflammation seen in COVID-19 hospitalized patients. Lenzilumab has a significant part to play in the treatment of patients in the pandemic and beyond,” Ji-Hoon Kim, CEO of Telcon and KPM Tech, said in a statement. "We are honored to be selected to develop and potentially launch lenzilumab in South Korea and the Philippines.”
The deal was Humanigen’s first in the Asia-Pacific region. The number of coronavirus cases in South Korea and the Philippines is roughly 412,000, according to the New York Times.
“Telcon and KPM Tech invested in Humanigen with a view to increase involvement moving forward,” Humanigen’s head of the Asia-Pacific region Bob Atwill said. “This is the next step in our relationship and we are grateful for the support we have received. Humanigen’s expansion strategy in the Asia-Pacific region is well underway and this is the first of other anticipated licensing transactions for lenzilumab in COVID-19 hospitalised patients.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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